OTHER TENNESSEE VALUE PLACE LOCATIONS

An artist's rendering shows the planned Value Place hotel near Hamilton Place mall.

An artist's rendering shows the planned Value Place...

Near the intersection of Lee Highway and Bonny Oaks Drive, right off Interstate 75, is the spot Value Place leaders and franchisers have picked for a new four-story, 124-room extended-stay hotel.

Amish and Dipal Patel, local franchisers, said Tuesday they have partnered with Value Place to bring the eighth Volunteer State location to Chattanooga.

"Chattanooga has been a target market for Value Place for a few years now," Ron Burgett, executive vice president of franchise development for Value Place, said in a statement. "This site and timing just work out for both of us at this time."

Burgett also cited the proximity of Volks-wagen to the new Value Place location.

"The site sits strategically at the entrance to Volkswagen, one of the largest employers in the Chatanooga region, and will provide the first quality, affordable extended-stay option for business travelers, employees relocating to the area and visitors to the region," he said.

The hotel is expected to open during the first quarter of 2015.

By then, Volkswagen could be in the midst of its biggest expansion since opening three years ago.

Being an extended-stay hotel, Value Place offers weekly rates at the minimum. Right now, the estimated weekly rate at Chattanooga's Value Place is about $300.

At Knoxville's Value Place, weekly rates begin at $219. At Nashville and Memphis locations, the weekly rate is $229.

Chattanooga's location represents a $6 million investment, including the cost of land, company officials said Tuesday.

And despite the hotel's size, Value Place officials say due to the company's "proven, simple operating model," a site can be staffed by as few as four or five full-time employees, which is one of the attractive features to the Patels.

"We chose to partner with Value Place because of the brand's high expected net operating incomes, low planned operating expenses and proven track record of success," said Amish Patel.

But also from a local developer's perspective, "Value Place is unique because they are a fellow developer and owner. We wanted to do business with someone who truly had our bottom line in mind, and their commitment to investing in the brand demonstrates that."

The announcement that Value Place is expanding into Chattanooga comes just a day after another developer announced plans to build a $19 million Holiday Inn and Suites at the corner of Chestnut and Fifth Streets in downtown Chattanooga.

Both announcements come despite numbers from Smith Travel Research -- an organization that tracks industry numbers -- that indicate hotel occupancy rates in Chattanooga declined from 62 percent three years ago to 53 percent last year.